Joint Employer 2020 Rule Rescinded

The U.S. Department of Labor (USDOL) has issued a final rule to rescind the March 2020 joint employer rule, finalizing the notice of proposed rulemaking issued earlier this year. The USDOL based its decision on the fact that, among other things, the rule improperly narrowed the test for vertical joint employment and conflicted with the text of the Fair Labor Standards Act (FLSA). The rule is rescinded effective September 28, 2021. See the rescission final rule.